The changing role of regulation in European air transport liberalization

This article begins by briefly describing the traditional methods of, and reasons for, regulation of the airline industry, both domestically and internationally, and then looks at the reasons and pressures for liberalization, before identifying possible distortions that may arise following liberalization of a previously regulated market. The main part of the article examines the European Community approach to liberalization, and in particular the various regulatory controls that have been maintained or introduced. The article concludes that, although it is too early to tell whether the practical results of the Community experiment will be successful, there is certainly scope for confidence that the gradual approach taken by the Community, accompanied by a degree of regulation, will be successful, and may be exported more internationally.